Prospective purchasers have shown interest in acquiring the financially troubled cryptocurrency lender Hodlnaut and its claims against the defunct digital asset exchange FTX. Several interested parties from a variety of backgrounds have shown interest. According to an affidavit discovered by Bloomberg News, the crypto platform’s potential buyers have gotten in touch with the temporary judicial managers who are managing the firm after it filed for protection from its creditors.
Details of the paper
The paper reveals that the possible investors and the judicial management are now signing non-disclosure agreements with one another. According to the declaration, as of the 9th of December, Hodlnaut Group owed a total of $160,300,000 to Algorand Foundation, Samtrade Custodian, S.A.M. Fintech, and Jean-Marc Tremeaux. This represented 62% of the company’s outstanding debt. Holdanut has yet to make any statement regarding the matter.
Hodlnaut, which also operates in Hong Kong, ceased withdrawals in August during the crypto crash in December of 2017, making it one of several lenders to go belly up. According to a filing from November, FTX. was responsible for about 72 percent of the digital assets that the platform distributed on centralized exchanges and had an estimated market value of 18.5 million Singapore dollars ($14 million). The previous month, significant Hodlnaut creditors voiced their preference to see the firm go out of business rather than accept the terms of a proposed restructuring plan.
This is one of many crypto entities that could face selling amid the crisis that FTX brought about. CoinDesk, a cryptocurrency news outlet that broke the story that led to the collapse of FTX, announced a few weeks ago that it had hired the financial advisory firm Lazard to look into the possibility of a sale as its parent company, Digital Currency Group, is experiencing financial strain as an outcome of the bankruptcy of the cryptocurrency platform. CoinDesk broke the story that led to the collapse of FTX.